Social investments:

Social investments:
A . should never be used in pension fund investing.
B . in pensions must be well thought- out, making sure that such investments are legal and do not impair the integrity of the funds in questions or the financial security of the participants or beneficiaries.
C . none of these answers.
D . have yet to be used as an investment in pension funds in the
G . are proper investment vehicles for pensions, since they are a "public good."

View Answer

Answer: B

Explanation:

In a pension plan, the first and foremost duty of the fiduciary is to the plan participants and their beneficiaries rather than to the plan sponsor that has the power to hire and fire the investment manager. Consequently, if urged to make investments that might be of direct benefit to a sponsoring community or to the community at large, the manager must ensure that such investments are legal and do not impair the integrity of the funds in question or the financial security of the participants/beneficiaries.